Opto Circuits (India) Ltd. (OCI), India's leading manufacturer of healthcare equipments, has signed a letter of intent to acquire a medical devices company in Western Europe for an estimated Rs 72 crore.
The target acquisition is into design and manufacturing of a wide range of balloon catheter assemblies and related products for coronary, renal and other applications and has projected revenues of around Rs 80-100 crore. The deal is likely to be an all cash deal and is expected to close in the next 8-10 weeks. The process is presently subject to financial and legal due diligence.
Explaining the rationale of the acquisition, Vinod Ramnani, chairman and managing director, OCI, comments, "After acquiring EuroCor Gmbh, our synergies in the stent-catheter and other peripheral systems have been well placed. Our latest move is in-line with our strategy of tapping new markets and growing our customer base. Going forward, we propose to shift the manufacturing base to India and leverage on the Indian cost advantage."
OCI acquired EuroCOR GmbH (manufacturer of Cardiac and Peripheral Stents of various types, including drug eluting coronary stents used in Critical Cardiac Care) of Bonn, Germany in January '06.